Balance transfer Idea

Balance transfer Idea

What are everyone's thoughts on this? Currently have a $8000 car loan at 5.99% through chase auto. I'd like to take advantage of the chase slate no fee/no interest for 18 month offer but obviously Chase won't transfer one of their own accounts to a chase credit card. What if I transferred the car loan to my capital one credit card taking advantage of the no balance transfer offer then instantly transfer it back to the chase slate card? Good idea?

Re: Balance transfer Idea

This doesn't seem worth it unless you are going to pay off the entire $8,000 in the next year. But even then, if you can pay down such large balances then you might as well just keep it with this loan since 5.99% isn't that bad over 1 year.

Re: Balance transfer Idea

SnackTrader wrote:This doesn't seem worth it unless you are going to pay off the entire $8,000 in the next year. But even then, if you can pay down such large balances then you might as well just keep it with this loan since 5.99% isn't that bad over 1 year.

+1

Weclome to the forum

5.99% is not a bad rate yes there are others out there but don't use a card

Make an extra payment or two if you can

Before you app think...Have you done your research of the CC?Does it fit your spending?Do you have a plan for the bonus w/o going into debt?Can you afford the AF?Do you know the cards benefits? Is it worth the HP?

Re: Balance transfer Idea

I would definitely look into a refi before I transferred to a credit card.

Either way, chase would probably be able to catch on to your BT going to an outside account, then going back into chase, and if they did, it might make it look like you're in financial trouble. 5.99% isn't that high, and if something happened and you weren't able to pay off your BT, the APR on that balance is gonna be a lot higher than 5.99 and you're going to wish you never did it.

Re: Balance transfer Idea

If you BT, and you are only able to pay down half of that balance after the BT time period expires, then you would be paying interest at credit card rates. Lets assume its 19.99%.

Interest on $4,000 at 19.99% is $800 per year. So even though you just had a year at 0%, the next year you will have doubled your interest expenses on a smaller balance.

I will go out on a limb and say that it is never worth it to move an installment loan into a credit card with a balance transfer. There are rare exceptions, but the interesting thing about the human race is there are so many people, that the likelihood of you or I being the exception to any rule is pretty slim.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.